Rosneft net income falls 70% amid cheaper oil, stronger ruble
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Russia’s Rosneft reported a 70% drop in nine-month net income, citing high interest rates, lower oil prices, and rising security costs as key pressures.
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A view of reservoirs of Russian state-controlled oil giant OAO Rosneft near Nefteyugansk in western Siberia, Russia, on April 5, 2006. (AP)
Rosneft, Russia’s largest oil producer, reported a 70% year-on-year decline in net income for the first nine months of 2025, citing lower oil prices, high domestic interest rates, and the effects of a stronger rouble.
The company’s net profit from January to September fell to 277 billion roubles ($3.57 billion), according to a statement released Friday. Revenues for the period dropped by 17.8%, totaling 6.29 trillion roubles.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 29.3% to 1.6 trillion roubles.
Rosneft attributed the decline to multiple factors, including monetary policy impacts and non-recurring charges. "The high level of the Bank of Russia's key interest rate continues to have a significant negative impact on the profit," the company said.
Strong rouble and security costs add to pressure
Rosneft also cited a rise in expenses related to “anti-terror security” as an additional factor weighing on its financial results. The company did not detail the nature of these costs, but the comment comes amid increased drone attacks by Ukraine targeting Russian energy infrastructure since August.
The stronger ruble further pressured export revenues, as crude sales denominated in foreign currencies convert to fewer rubles.
Broader Oil Sector Feels Impact of Falling Prices
The earnings drop at Rosneft follows similar declines across global energy majors. Lower oil prices have already dented profits at companies like Shell and TotalEnergies.
The company’s financial performance reflects broader headwinds facing the Russian oil industry, as it navigates international sanctions, domestic monetary tightening, and increased operational costs linked to military tensions.
Rosneft reported a 70% drop in net income for the first nine months of 2025, totaling 277 billion roubles. The decline was driven by falling oil prices, a stronger rouble, and high interest rates. The company also cited rising “anti-terror security” expenses, though without details. Rosneft’s results reflect broader pressure on global and Russian energy firms amid market volatility and regional instability.
